The memory market has traditionally seen razor thin margins and cheap prices as the various manufacturers crank out DRAM chips to healthy levels. While we are not yet at the point for DDR4 memory to come out with high early-adopter prices, iSuppli believes that we will be seeing increased pricing later this year regardless.

A DDR3 memory module

According to Tom’s Hardware, analysts working for IHS iSuppli have determined that inventory is decreasing this year, and has decreased 4 percent since the fourth quarter of last year. Whereas DRAM suppliers were estimated to have 12.1 weeks of inventory in Q4 2011, they are currently sitting on 11.6 weeks. While supply grew last year and prices fell dramatically, prices have increased by 1.5 percent versus last year. The analysts further expect prices to rise by 7.7 percent and 3.5 percent in Q3 2012 and Q4 2012 respectively.

One possible aspect of the drop in supply is the declaration of bankruptcy and subsequent buyout of Elpida Memory by Micron. As supply goes down and demand stays the same – or continues to rise – prices are naturally going to increase for consumers. Now that there is one less manufacturer to contend with, it is likely that prices will continue to be higher than before. If you have not already upgraded your RAM, now seems to be as good as it’s going to get price-wise, so be sure to jump in on the good deals while you can!

Micron has been very busy lately, spending $2.5 billion USD to purchase Elpida and another $334 million USD to purchase another 24% of DRAM maker Rexchip from Powerchip. The latter of those purchases gives Micron a total of 89% of the existing shares of Rexchip which may not give them outright ownership of Rexchip but gives them such a huge majority that they can determine the outcome of any vote which is presented to shareholders. Rexchip brings a single 300mm Fab working on 30nm process to the table, which gives Micron a bit more manufacturing capability to utilize for what is likely to be a busy season for them.

The Elpida purchase is much bigger for both the industry and Micron, especially as they decided to buy the company outright instead of purchasing a subsidiary or only the IP of Elpida. Instead the company will remain intact for the near future though there will likely be changes to the executive structure as they are integrated with Micron. Not only does this purchase give them access to all property, intellectual or physical, that Elpida currently possesses it give Micron an in at Apple as it was Elpida that supplied much of the chips used by Apple. That would put Micron in the enviable position of supplying both PC and Apple products. DigiTimes breaks down the deal here.

"Micron Technology and Elpida Memory's trustees have signed a definitive sponsor agreement for Micron to acquire Elpida, according to the US memory chipmaker. The agreement has been entered into in connection with Elpida's corporate reorganization proceedings conducted under the jurisdiction of the Tokyo District Court.

Micron revealed that under the agreement, JPY200 billion (US$2.5 billion) total consideration and less certain reorganization proceeding expenses will be used to satisfy the reorganization claims of Elpida's secured and unsecured creditors. Micron will acquire 100% of the equity of Elpida for JPY60 billion to be paid in cash at closing."

Micron Technologies has confirmed that they are in talks to purchase Elpida Memory. Despite Toshiba pulling out of the race, the deal would have a rumored value of 2.51 Billion dollars. This deal would move Micron into the second largest DRAM producer, behind Samsung, with a 25 percent market share globally.

Elpida Memory, Inc. has been having troubles as a company for a couple of years.

Elpida was established as a company from its parent companies, NEC and Hitachi, in 1999 and took its current name the next year. Elpida has been delisted from the Tokyo Stock Exchange in late March, a month after filing for Bankruptcy.

Multiple companies have come and gone in talks to purchase Elpida. Toshiba and SK hynix have somewhat recently pulled out of negotiations as the American TPG Capital LP and the Chinese Hony Capital shared a bid for the manufacturer.

Or buy us and be #2 : D

Micron has just recently announced that they would place a bid for Elpida which, if completed, would push Micron past Hynix into the second largest DRAM producer by market share. Micron also seems to be interested in purchasing Elpida to access its mobile technology. While the actual bid is not public knowledge, it has been rumored to be worth around 2.51 billion dollars.

It may also be possible that none of the above deals would go through. Reuters reports that a group of debt holders for Elpida might push for their own plan if they feel that none of the current deals would suffice.